Thursday, July 21, 2011

HG Metal

HG Metal: NRA Capital initiates at Buy with $0.095 TP. Note that risk reward ratio for counter attractive given stock trading at historical lows, at 5.5x FY11 P/E and 5.4x FY12 P/E and 30% discount to book.
Add that HG staged a slower recovery then its peers partly due to internal restructuring and the fact that it was over leverage, but reported a remarkable set of results in 1H11 with gross margins jumping 12-13%.

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